Pennsylvania

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    Mariner East 2 Tells PA Town: You’re Flushing $100K Down Toilet

    Rabidly anti-drilling organizations like the Philadelphia-based Clean Air Council (CAC) have been using the deep pockets of their contributors to stir up dissent against Sunoco’s Mariner East 2 NGL pipeline, particularly in towns in the Philly orbit (see Towns Near Philly Collude with CAC to Block Mariner East 2 Pipe?). CAC has towns like Middletown (Delaware County) so agitated, Middletown’s town council foolishly voted to allocate $100,000 out of $1.8 million the town received for leasing rights-of-way for the pipeline to assess risks and create an emergency response plan for the pipeline. Sunoco is politely telling Middletown–you’re flushing 100 grand down the toilet. Federal guidelines already provide most if not all of the information (and planning) required to protect the good citizens of Middletown. So why is the town council throwing good money away?…
    Read More “Mariner East 2 Tells PA Town: You’re Flushing $100K Down Toilet”

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    Potter Twp Inches Closer to Approving Permits for Shell Cracker

    In December the Potter Township Board of Supervisors convened a public hearing on the proposed Shell ethane cracker plant–to be built in Potter Twp–that ended up going on for 10 hours (see Potter Twp Declines to Approve Permits for Shell Cracker, For Now). The intent was to approve Shell’s request for permits to begin construction on the multi-billion dollar ethane cracker plant. That didn’t happen. Instead, the supervisors decided to hold another hearing the following night. They did, and that hearing went for over an hour, in closed-door session. At the conclusion, the supervisors made a couple of requests from Shell, which Shell agreed to. However, the supervisors were still not ready to approve the permits and instead asked for more paperwork to be filed–by both Shell and the radical, anti-fossil fuel Big Green group Clean Air Council (from Philadelphia). The supervisors are certainly no rubber stamp for the cracker project. They are working hard to ensure area residents are protected when (not if) it gets built. But that’s not good enough for radical, anti-fossil fuel nutters who (irrationally) want nothing to do with natural gas. The supervisors held another meeting last night and a small group of antis attended with preprinted signs. One sign said “Deficient = DENY.” The other said, “Disaster Decision.” The first sign was flashed as supervisors tried to conduct their business. When the supervisors finally held a vote to ask the town attorney to draw up an official document to approve the cracker, the antis got mouthy (as they always do) and flashed the other sign. Amidst the shouting by antis, one supervisor asked for order in the room. One horse’s rear-end shouted, “Maybe the public wants disorder.” Here’s how it went last night…
    Read More “Potter Twp Inches Closer to Approving Permits for Shell Cracker”

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    EQT Wins Court Case Against PA DEP re $4.5M Wastewater Leak Fine

    In October 2014 the Pennsylvania Dept. of Environmental Protection (DEP) fined PA driller EQT $4.53 million for a leaky wastewater impoundment in Tioga County, PA (see PA DEP Levies Biggest Fine Ever, $4.5M Against EQT). While EQT did not say there wasn’t a problem with leaks at the site, they did say the way the DEP calculated the fine is unreasonable and arbitrary. In fact, EQT says the DEP levied the fine and took EQT to court because a few weeks prior EQT had sued the DEP over a different matter. EQT appealed the fine and the case to PA Supreme Court and a year later the high court handed EQT a “procedural victory” by saying EQT has a point about the manner in which the DEP is calculating the fine (see PA Supreme Court Gives EQT “Procedural Victory” in $4.5M Fine Case). The Supreme Court sent the case back to a lower court, PA Commonwealth Court, for follow up work. The work is done and EQT has won. A three-judge panel ruled that the method the DEP currently uses to assess fines–by how many days pollution lingers, instead of by how many days the initial release of pollution lasted–is not legal nor common sense. The judges said such a method in fining, “would result in potentially limitless continuing violations.” Under the old way of calculating fines, the DEP was considering upping the fine on EQT to an insane $157 million. Calculating it under the new way will mean a fine of around $120,000. This is a major victory for EQT and a reigning in of egregiously overzealous state regulators…
    Read More “EQT Wins Court Case Against PA DEP re $4.5M Wastewater Leak Fine”

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    PA Gov Wolf Asks for Severance Tax 3rd Year in a Row

    Pennsylvania Gov. Tom Wolf is…what adjective can we use? Recalcitrant. Stubborn. Pigheaded. Stupid. Perhaps all of the above. Wolf is clearly in over his head and the most ineffective PA governor in more than a generation. When he assumed office in 2015, he floated a budget calling for a new 5% severance tax on the Marcellus industry–a tax which even his supporters admitted would be closer to 17% (see PA Official Admits Wolf Severance Tax Highest in Nation @ 17.3%). Such a tax would literally kill the entire industry. That budget deal was a disaster. Wolf held up the budget for nine months into the new budget year, and finally caved (see Hubris: PA Gov. Wolf Caves on Budget, then Claims He Won). Beaten but unrelenting, Wolf came back last year with yet another severance tax proposal–this time an astonishing 6.5% tax (see More on Wolf’s New 6.5% Severance Tax – What Could of Been). What a putz. Yes, he lost again. Republicans held firm and he dropped his demand. As we’ve chronicled repeatedly, Wolf insists on such a tax because of his quid pro quo payoff to teachers unions for their support in getting him elected. Sleazy. PA already has a higher tax rate on natural gas than other oil and gas producing states. PA has an impact fee plus a corporate income tax. The two together are, on average, higher than the severance tax rates in Texas, Oklahoma, Louisiana, Colorado and other o&g states. We’ve already seen big Marcellus drillers leave and go to other states. A severance tax will greatly reduce the amount of drilling in PA. So, it’s now Wolf’s third year and he is about to release another budget. And you will not believe it. This dolt is calling for a severance tax again! Third year in a row! But he won’t say how high of a tax, at least not yet…
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    Look Ma, No Pipeline! Lycoming County Co. Begins CNG Shipments

    In June 2015 MDN told you about a really cool plan by a Pennsylvania company to establish a CNG (compressed natural gas) terminal in Lycoming County, PA as a way to get natural gas to manufacturers, fleets and businesses where no pipeline infrastructure now exists (see Getting Marcellus NatGas to Customers without Pipelines). Compass Natural Gas Partners, based in Camp Hill, PA, said they would build a first-of-its-kind CNG terminal in Lycoming County that will accept Marcellus Shale gas in, clean it up (get rid of the water in it), compress it to 3600 psi, and load it into specially designed trailers that haul it to customers. And then the project went quiet for the next year and a half. Except it wasn’t really quiet. Compass, with a tag line on their website that says “All We Need is Road,” built the terminal and it went fully operational in December. Trucks are now servicing customers in Cambria and Mifflin counties…
    Read More “Look Ma, No Pipeline! Lycoming County Co. Begins CNG Shipments”

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    MDN Reader Discount to Attend Pittsburgh Pipeline Meeting Jan 17

    A special offer to MDN readers from the Appalachian Pipeliners Association (APA). MDN readers are invited to the January 2017 APA Dinner Meeting and Presentation: Oil & Gas Journal’s Forecast and Review–2017. Presented by Oil & Gas Journal Editor, Bob Tippee, the presentation (on Jan. 17) is sure to benefit industry operators and suppliers interested in learning more about what’s in store for the year ahead. MDN readers get a special discount to attend…
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    Bill Aims to Fix PA DEP Conflict of Interest re Penalty Revenue

    PA Sen. Scott Hutchinson

    Pennsylvania State Senator Scott Hutchinson says the PA Dept. of Environmental Protection (DEP) has a built-in conflict of interest. The DEP has broad powers of investigating and assessing fines and penalties on the oil and gas industry for violations of the rules the DEP itself makes. The icing on the cake is that the DEP gets to keep the money it levies in fines and penalties. Hmmm. You make up the rules, you get to aggressively enforce the rules, and then you get to keep the money that results. What’s wrong with this picture? Hutchinson says if you put someone else (the PA legislature, in this case) in charge of the money raised from the fines and penalties, that makes the situation a little more fair and balanced. We couldn’t agree more…
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    Eastern Shore Files with FERC to Expand Delmarva Pipeline

    In July 2016 MDN told you about a smallish, but important pipeline project in the Delmarva Peninsula area, which includes most of Delaware and portions of Maryland and Virginia. Eastern Shore Natural Gas’ 2017 System Expansion project will bring new sources of natgas from an interconnection Eastern Shore has with the mighty TETCo (Texas Eastern Company) pipeline near Philadelphia (see PA/MD/DE Pipeline Project Heats Up with Open House Mtgs This Week). Although Eastern Shore, a subsidiary of Chesapeake Utilities Corporation, ran a non-binding open season in 2015, and although they pre-filed for the expansion project in May 2016, they have only just filed a full, official application with the Federal Energy Regulatory Commission (FERC). Originally the project was slated to run ~33 miles of pipeline looping in PA, MD and DE. That number seems to have gone down, to 23 miles. Compressor upgrades and other pipeline will also be added. Chesapeake Utilities, the parent company, calls the project the single largest such expansion in Eastern Shore’s history, a project that will bump up gas delivery volumes by 25%…
    Read More “Eastern Shore Files with FERC to Expand Delmarva Pipeline”

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    2 Failing Big Green Groups in PA Quasi-Merge, PennFuture & CVPA

    Two radical Pennsylvania-based “environmental” groups are not exactly merging–but almost. One group is the radical PennFuture, which gave rise to such luminaries as John Quigley (fired as Sec. of the PA Dept. of Environmental Protection), John Hanger (left the state, former DEP Secretary, ran for governor last time, lost, supports legalizing pot), and Cindy Dunn (currently Secretary of Dept. of Conservation and Natural Resources). PennFuture is tax exempt, yet it routinely engages in political activity in violation of its IRS 501(c)(3) status. The other group is Conservation Voters of PA, a 501(c)(4) advocacy organization affiliated with a political action committee (PAC). The two groups are combining certain portions of their operations–“policy, advocacy, and legal resources”–in an attempt to “hold legislators accountable, mobilize voters, and shine a spotlight on candidates’ records on clean air, water and energy issues.” Our view is that their organizations’ membership and donations are dwindling and this is two failing organizations clinging to each other so they don’t slip beneath the waves into oblivion…
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    Climate Radicals Protest in Philly Against Trump’s Cabinet Picks

    Some 200 leftist/radical bought-and-paid-for “protesters” (paid by Big Green groups) “rallied” in downtown Philadelphia yesterday in front of both of PA’s U.S. Senate office (Bob Casey, total jerk and Democrat hack, and Pat Toomey, marginal Republican). They were protesting President-elect Trump’s picks to run the EPA, Dept. of Energy and Dept. of Interior–calling them “climate deniers.” This is part of a national campaign paid for by radical environmental groups, like 350.org and the Sierra Club, groups totally invested in the theory that mankind is causing the earth to catastrophically heat up–even though the temperature record doesn’t back up the theory. Holding silly banners like “NO CLIMATE DENIAL CABINET” they paraded around, collected their paychecks, bought a few dime bags of weed while they were in the ‘hood and generally had a good time. What’s really offensive is that these same idiots demanded that Republicans rubber stamp Obama’s radical cabinet when he assumed office–which stupid Republicans did. These same “protesters” now demand the victor (yes, Trump won) cave to their childish demands. Fortunately Trump is a different kind of Republican and doesn’t back down from a fight…
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    Shell Leases More PA Properties to Build Ethane Pipeline

    Click to view larger version

    Nearly a year ago, in February 2016, MDN brought you exclusive news that Shell had begun approaching landowners in Beaver County to get them to sign easements for two ethane pipelines to feed the mighty cracker plant they plan to build in the county (see Exclusive: Shell Leasing Land for 2 Pipelines to PA Cracker Plant). At that time Shell had still not fully committed to building the cracker–something they finally did in June (see Breaking: Shell Pulls the Trigger, PA Ethane Cracker is a Go!). In August, MDN brought you more details, that Shell is indeed working on a 94-mile ethane “pipeline system” with two “legs” to feed the cracker, confirming the tip we received in February. The new ethane pipeline system has a name: the Falcon Ethane Pipeline System (see Shell Working on 94-Mile Ethane Pipeline to Feed PA Cracker). Last October Shell formally launched an open season to sign up shippers for the Falcon Pipeline (see Shell Launches Open Season for PA-WV-OH Falcon Ethane Pipeline). Some new news to share. Last September and October Shell signed up six more property easements, in Beaver County, for the Falcon Pipeline. How much Shell will pay the landowners is still being negotiated and will not be made public (unfortunately). However, we can tell you who leased, along with the piddly amount of taxes Shell will pay to the state and local towns…
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    Towns Near Philly Collude with CAC to Block Mariner East 2 Pipe?

    Several townships in the Philadelphia orbit appear to be colluding with each other and with the Philadelphia-based Clean Air Council in passing nearly identical resolutions opposing the Mariner East 2 natural gas liquids pipeline. Eight townships or boroughs along or “close to” (meaning not along) the route in Delaware and Chester counties have published resolutions or proclamations badmouthing the project. The municipalities include: Edgmont, West Goshen, Thornbury, Middletown, Westtown, Rose Valley, Swarthmore and Media. Some of the self-incriminating evidence for collusion comes from an admission by one of them: “The community statements are similar to each other because of consultation between their leaders.” And this, from the odious Clean Air Council: “Alex Bomstein, a lawyer with the environmental group Clean Air Council, said that while there are other local campaign such as those in Lebanon and Huntingdon Counties, the efforts in Delaware and Chester Counties are more ‘developed’ in the Philadelphia suburbs. ‘There are more people organizing than elsewhere,’ he said, probably because of a greater population density closer to Philadelphia.” Why would the StateImpact Pennsylvania propagandist quote the CAC in the same article as the colluding towns, unless they were somehow tied together?…
    Read More “Towns Near Philly Collude with CAC to Block Mariner East 2 Pipe?”

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    Radical Democrat PA House Member Tossed to Curb by his Own Party

    Rep Greg Vitali

    Sometimes crazy, wacko environmentalist Democrats in the Pennsylvania legislature are so far left, so crazy, so wacko, it’s even too much for the PA Democrat party. Such is the case with “outspoken” (we’d say loud-mouthed) Rep. Greg Vitali, from the Philadelphia area. We’ve written a number of articles prominently mentioning Rep. Vitali, who wants PA residents to use less natural gas (see PA Rep. Vitali Wants to Force Residents to Use LESS Natgas). However, the wacko Vitali has burned bridges in Harrisburg. He has aggressively crossed swords with PA’s Dem Governor, Tom Wolf, after Wolf understandably fired John Quigley as Secretary of the Dept. of Environmental Protection when Quigley was caught using a private email account to collude with his buddies in the Big Green movement (see Smoking Gun: Copy of the Email that Got John Quigley Fired). Vitali savaged Wolf for not supporting Quigley (see PA Dems Eating Their Own – Turn on Gov. Wolf over Quigley Firing). Since last June, Vitali has continued his infighting and it’s now caught up with him. He arrived in his office in Harrisburg one day to find a computer, and the person who operates it, being reassigned to the the new chairman of the House Environmental Resources and Energy committee–a committee Vitali used to chair. It was the first he’d heard of being tossed to the curb…
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    Court Denies PA Senators Right to Join Lawsuit Against DRBC

    Last May MDN told you about a group of brave landowners in Wayne County, PA who have had their property rights stolen by the Delaware River Basin Commission (see Wayne County, PA Landowner Sues DRBC Over Fracking Ban). They filed a lawsuit against the DRBC asking a judge to declare the DRBC does not have jurisdiction to prevent construction of a natural gas well. Several northeastern PA counties (unfortunately) are located in the Delaware River Basin and the DRBC has steadfastly refused to allow them to drill any shale wells, citing concerns that the Delaware River supplies fresh water to millions downstream–even though they can’t explain how that water might get contaminated. A few months later, the DRBC’s best friend and patron, THE Delaware Riverkeeper, sued to join the lawsuit to help defend the inept DRBC (see Delaware Riverkeeper “Intervenes” to Protect its Patsy – the DRBC). In November, three PA senators filed to join the lawsuit on behalf of the landowners that they represent (see PA Senators File to Join Case Against DRBC Fracking Moratorium). Predictably, THE Delaware Riverkeeper sought to prevent the senators from joining the lawsuit. You see, it’s OK for Riverkeeper to participate as an outsider, but not OK for the Senators to participate to ensure the people they represent get represented in the lawsuit. That’s how it works in the world of enviro radicalism. Unfortunately, the court where the case is being heard sided with the radicals and has ruled the Senators have no right to represent the people they were elected to represent when it comes to a court case…
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    Law Firm Norton Rose Fulbright Closing Pittsburgh Marcellus Office

    A couple of times we’ve highlighted the great work done by the Norton Rose Fulbright law firm, most recently just last month (see Updated List of Proposed Laws in PA-OH-WV Affecting Marcellus/Utica). Researchers at the law firm issue a quarterly legislative action update looking at bills and laws previously voted on, and new bills/laws introduced, affecting the oil and gas industry in Pennsylvania, Ohio and West Virginia. Very impressive. So we were distressed to learn that Norton Rose Fulbright is closing its Marcellus/Utica office in Pittsburgh, with plans to cover the region from its other offices. It is a big firm, with more than 3800 lawyers and other legal staff based in more than 50 cities across Europe, the United States, Canada, Latin America, Asia, Australia, Africa, the Middle East and Central Asia. They opened their Pittsburgh office in 2011 with a eye on grabbing business from the PA Marcellus. We can only conclude that didn’t work out so well…
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    PA DEP Slowing Down Permits to Construct Well Pads & Pipelines

    In 2012, the Pennsylvania Dept. of Environmental Protection (DEP) launched an “expedited” review process for erosion and sediment control general permits that it grants when drillers or pipeline companies plan to push dirt around on more than 5 acres at a time. Which means every pipeline built and every shale well pad constructed. The expedited review process shortened the time to get a permit down to as little as 14 days–provided the paperwork was filled out correctly. The DEP conducted an internal review and found that 59% of the time they didn’t get the paperwork in a form they wanted, so they disqualified those applications. Now the DEP is revising its rules for expedited review, meaning they’re pretty much doing away with it. Welcome back to long delays in getting permits to push dirt around. This action appears to be a response to stinging criticism from the PA legislature that permits, which are supposed to be issued in 14 days, are taking over 100 days–a charge leveled by PA Sen. Camera Bartolotta who is introducing legislation to put a burr under the DEP’s saddle. So the DEP is saying fine, we’ll just change it back to the way it used to be. You can now expect long permit delays from the outset. Your state government at work, serving the people…
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